Polestar loses US approval for 2027 and later EV sales
The EV maker says a Commerce Department decision under connected-vehicle rules will force it to retreat from the US market.
By Maya Lindqvist · Senior Technology Correspondent
2 min read
Polestar will not be permitted to sell electric vehicles from model year 2027 onward in the United States after federal officials declined to authorize the company under a new connected-vehicle rule. The decision matters because it shows how US restrictions on Chinese vehicle technology are beginning to reshape which EVs can reach American buyers.
Polestar said in a press release that its pullback from the US follows a decision by the Department of Commerce’s Bureau of Industry and Security. According to the company, the bureau did not grant Polestar authorization under the current Connected Vehicle Rule to keep selling vehicles from the 2027 model year and beyond.
The rule, adopted during the Biden administration, bars the import and sale of vehicles that use covered software from “countries of concern,” including China, according to The Verge. Polestar is owned by Geely, one of China’s largest automakers.
What the rule covers
The Connected Vehicle Rule applies to technology that links a vehicle to outside networks, according to The Verge. That includes Bluetooth, Wi-Fi, cellular and satellite-related components.
The policy also addresses national security concerns about connected-car hardware and software. The Verge reported that federal officials have raised the possibility that cameras, sensors and onboard computers could be used by foreign adversaries to collect sensitive information about US citizens and infrastructure.
The same policy also blocks China from testing self-driving vehicles on US soil, according to The Verge. The broader aim is to limit the role of Chinese-linked software and connected systems in vehicles operating in the United States.
Polestar had warned of the risk
Polestar currently sells the Polestar 3 and Polestar 4 electric vehicles in the US, according to The Verge. The company had been preparing for the rule for more than a year before the Commerce Department decision.
In January 2025, Polestar said it could be forced to leave the US market if the rule took effect, The Verge reported at the time. The latest denial puts that warning into practice for model year 2027 and later vehicles.
The decision does not change the basic reason for the company’s problem: Polestar’s ownership ties to Geely place it within the scope of a US policy aimed at Chinese vehicle software. The company sought permission to continue selling future model years, but the Bureau of Industry and Security did not approve that request, according to Polestar.
The result is a sharp limit on Polestar’s US ambitions just as automakers compete for electric-vehicle buyers. For US consumers, it means one China-owned EV brand’s future models will be removed from consideration unless the regulatory situation changes.
This story draws on original reporting from The Verge.